Bodycote Bid Withdrawn
Apollo Withdraws £1.5 Billion Bodycote Takeover Bid, UK Group Confident in Independent Future
Apollo Global Management has confirmed it will not make a firm takeover offer for Bodycote, ending a conditional bid of about £1.5 billion and removing near-term takeover uncertainty for the UK industrial services group. Under UK takeover rules, Apollo’s decision places it under a limited period during which it cannot easily reapproach, though it could potentially return under certain conditions. Bodycote said its board remains confident in the company’s independent strategy and reported a positive start to 2026 trading, with progress tied to its Optimise, Perform and Grow initiatives. Several reports noted that Apollo continues to hold Bodycote and thanked the board for discussions, while Bodycote emphasized the ability to focus on long-term execution rather than a possible offer premium. The withdrawal also reflects ongoing private equity interest in UK-listed assets, even as scrutiny continues over the depth and attractiveness of Britain’s equity markets.
Key Points
Apollo said its conditional offer was priced at 8.85 pence per share (announced last month), and it declined to give a reason for not proceeding with the firm offer.
In its statement, Apollo said it “continues to hold Bodycote and its management team in high regard,” adding it is “appreciative of the discussions” and “would like to thank them for their time and consideration of the proposal.”
Bodycote reported trading performance that helped frame its confidence: it said core revenue grew 9.0% at constant currency in the first four months of the year, led by Specialist Technologies (with strength in Aerospace & Defence and Industrial Gas Turbines), while Industrial Markets revenue was flat year-on-year.
Bodycote said its advisers for the process included Barclays, Goldman Sachs and Jefferies, and noted it had exited the formal offer period governed by the UK Takeover Code—freeing management to focus on delivery of its strategy.
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